Orange County Housing Summary: September 3, 2024

David Deem

Broker Associate

714-997-3486

Dave@DeemTeam.com

The active listing inventory in the past couple of weeks increased by 109 homes, up 3%, and now sits at 3,599, its highest level since October 2022. In August, 31% fewer homes came on the market compared to the 3-year average before COVID (2017 to 2019), 1,083 less. Yet, 300 more sellers came on the market this August compared to August 2023. Last year, there were 2,385 homes on the market, 1,214 fewer homes, or 34% less. The 3-year average before COVID (2017 to 2019) was 6,569, or 83% extra.

Demand, the number of pending sales over the prior month, plunged by 124 pending sales in the past two weeks, down 8%, and now totals 1,470, its largest drop of the year. Last year, there were 1,465 pending sales, nearly unchanged. The 3-year average before COVID (2017 to 2019) was 2,438, or 66% more.

With supply rising and demand falling, the Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, increased from 66 to 73 days in the past couple of weeks. It was 49 days last year, faster than today. The 3-year average before COVID (2017 to 2019) was 82 days, a bit slower than today.

In the past two weeks, the Expected Market Time for homes priced below $750,000 decreased from 49 to 48 days. This range represents 16% of the active inventory and 24% of demand.

The Expected Market Time for homes priced between $750,000 and $1 million increased from 40 to 45 days. This range represents 14% of the active inventory and 23% of demand.

The Expected Market Time for homes priced between $1 million and $1.25 million increased from 42 to 62 days. This range represents 11% of the active inventory and 13% of demand.

The Expected Market Time for homes priced between $1.25 million and $1.5 million increased from 55 to 66 days. This range represents 11% of the active inventory and 12% of demand.

The Expected Market Time for homes priced between $1.5 million and $2 million increased from 76 to 87 days. This range represents 15% of the active inventory and 13% of demand.

In the past two weeks, the expected market time for homes priced between $2 million and $4 million increased from 108 to 110 days. For homes priced between $4 million and $6 million, the Expected Market Time increased from 194 to 351 days. For homes priced above $6 million, the Expected Market Time decreased from 527 to 329 days.

The luxury end, all homes above $2 million, account for 33% of the inventory and 15% of demand.

Distressed homes, both short sales and foreclosures combined, comprised only 0.3% of all listings and 0.3% of demand. Only six foreclosures and three short sales are available today in Orange County, with nine total distressed homes on the active market, up one from two weeks ago. Last year, four distressed homes were on the market, similar to today.

There were 2,034 closed residential resales in July, up 14% compared to July 2023’s 1,784 and up 12% from June 2024. The sales-to-list price ratio was 99.2% for Orange County. Short sales accounted for 0.1% of all closed sales, and there were no foreclosure sales. That means that 99.9% of all sales were good ol’ fashioned sellers with equity.

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